Needham & Firm is eyeing a possible resurgence in meme coin exercise, an element they imagine might enhance buying and selling quantity on cryptocurrency change Coinbase (NASDAQ: ).
The corporate highlighted a big drop in COIN buying and selling quantity throughout Could in a word on Wednesday, which it attributed to an absence of clear route within the broader crypto market.
Nevertheless, Needham stays bullish on Coinbase within the coming months. They level to a number of constructive developments, together with the return of the “roaring kitty”.
This can be a reference to common retail investor Keith Gill, who has been linked to the meme inventory craze in 2021. Needham believes his return might reignite curiosity in meme cash, probably driving quantity on Coinbase.
As well as, they level to an enhancing regulatory setting for cryptocurrencies, particularly in an election yr when politicians could also be extra receptive to the trade.
Lastly, additionally they imagine that the potential approval of the Ether ETF could possibly be a constructive, which might additional appeal to retail traders to the crypto area.
Needham highlights the significance of meme cash within the cryptosphere and highlights the current success of Phantom, a crypto pockets identified for storing meme cash. Needham argues that the meme-based crypto financial system might be a pillar of the universe, and Coinbase can profit from increasing its choices on this space.
Whereas Could noticed a decline, Needham concludes with an optimistic outlook for Coinbase. He believes the mixture of potential meme coin exercise, a extra favorable regulatory setting and the opportunity of an Ether ETF might carry retail traders again to the platform and improve its general buying and selling quantity.
